For its first taxable year, Rony Inc.'s accounting records showed the following.

Operating loss per books $(800,000) Temporary book/tax difference 90,000 Net operating loss for tax $(710,000)

a. Use a 21 percent rate to compute Rony's deferred tax asset with respect to the $90,000 book/tax difference.

b. Use a 21 percent rate to compute Rony's deferred tax asset with respect to its $710,000 NOL carryforward.

c. Compute Rony's tax benefit (negative tax expense) reported on its first income statement.